Real Estate News, Tips, & Tricks • February 29, 2024

Why You Want an Agent’s Advice for Your Move

by LaDawn Sperling

No matter how you slice it, buying or selling a home is a big decision. And when you’re going through any change in your life and you need some guidance, what do you do? You get advice from people who know what they’re talking about.

Moving is no exception. You need insights from the pros to help you feel confident in your decision. Freddie Mac explains it like this:

“As you set out to find the right home for your family, be sure to select experienced, trusted professionals who will help you make informed decisions and avoid pitfalls.”

And while perfect advice isn’t possible – not even from the experts, what you can get is the very best advice out there.

The Power of Expert Advice

For example, let’s say you need an attorney. You start off by finding an expert in the type of law required for your case. Once you do, they won’t immediately tell you how the case is going to end, or how the judge or jury will rule. But what a good attorney can do is walk you through the most effective strategies based on their experience and help you put a plan together. They’ll even use their knowledge to adjust that plan as new information becomes available.

The job of a real estate agent is similar. Just like you can’t find a lawyer to give you perfect advice, you won’t find a real estate professional who can either. That’s because it’s impossible to know everything that’s going to happen throughout your transaction. Their role is to give you the best advice they can.

To do that, an agent will draw on their experience, industry knowledge, and market data. They know the latest trends, the ins and outs of the homebuying and selling processes, and what’s worked for other people in the same situation as you.

With that expertise, a real estate advisor can anticipate what could happen next and work with you to put together a solid plan. Then, they’ll guide you through the process, helping you make decisions along the way. That’s the very definition of getting the best – not perfect – advice. And that’s the power of working with a real estate advisor.

Bottom Line

If you’re looking to buy or sell a home, you want an expert on your side to help you each step of the way. Let’s connect so you have advice you can count on.

Uncategorized • February 20, 2024

Buyers are back – February 2024 Metro Denver Market Update

by LaDawn Sperling

New listings, pending sales, and average days on market all increased month-over-month. Active listings and closed sales both decreased month-over-month as the majority of sales closed in January went under contract in December and many new buyers entered the market in January.

January’s vital statistics for all homes – detached single family (DSF) and attached single family (ASF) combined – included:

The average price for homes was up 0.63% compared to the previous month and up 5.43% from January 2023.
The average days in the MLS increased 6.52% from the prior month and are up 6.52% from a year ago. The median days in MLS increased from 30 days to 36 days month-over-month.
Active listings at months-end were down 2.01% from December and up 18.23% from this time last year.

As we enter the new year, buyers are eagerly returning to the real estate market, encouraged by increased choices in listings. New listings have surged by 14.73 percent year-over-year, particularly in detached properties, which saw a notable increase of 17.94 percent. Pending home sales also rose by 6.5 percent, indicating growing buyer interest. However, closed sales lagged slightly, likely reflecting transactions initiated in December. Median close prices for single-family homes have risen to $625,000, with properties selling closer to list price, suggesting a more competitive market. Conversely, attached properties are experiencing a slight slowdown, with pending sales decreasing by 6.61 percent year-over-year and median close prices remaining stable at $395,000.

Looking ahead, the real estate market is poised for a strong spring selling season, driven by pent-up demand and favorable lending conditions. Despite the Federal Reserve’s decision to maintain interest rates, a decline in rates later in the year would likely further stimulate activity. However, buyers waiting for lower rates risk facing increased competition and higher prices in the future. Therefore, it’s crucial to understand the market dynamics and make informed decisions regarding timing and risk. As always, If you have any questions or need guidance, feel free to reach out.

This update is based on information provided by the Denver Metro Association of Realtors® for the period of January 1, 2024, through January 31st, 2024, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

Uncategorized • February 9, 2024

Don’t Wait Until Spring To Sell Your House

by LaDawn Sperling

As you think about the year ahead, one of your big goals may be moving. But, how do you know when to make your move? While spring is usually the peak homebuying season, you don’t actually need to wait until spring to sell. Here’s why.

1. Take Advantage of Lower Mortgage Rates

Last October, the 30-year fixed mortgage rates peaked at 7.79%. In January, they hit their lowest level since May. That means you may not feel as locked-in to your current mortgage rate right now. That downward trend in rates has made moving more affordable now than it was just a few months ago.

Another reason today’s rates make now a good time to sell? More buyers are jumping back into the market. Many had been waiting on the sidelines for rates to fall, but now that that’s happening, they’re eager and ready to buy. That means more demand for your house. According to Sam Khater, Chief Economist at Freddie Mac:

“Given this stabilization in rates, potential homebuyers with affordability concerns have jumped off the fence back into the market.”

2. Get Ahead of Your Competition

Right now, there are still more people looking to buy a home than there are houses for sale, which puts you in a great position. But keep in mind, with the recent uptick in new listings, we’re seeing more sellers may already be re-entering the market.

Listing your house now helps you beat your competition and makes sure your house will stand out. And if you work with an agent to price it right, it could sell fast and get multiple offers. U.S. News explains:

“When there is low housing inventory, sellers could get top dollar for their homes.”

3. Make the Most of Rising Home Prices

Experts home prices will keep going up this year. What does that mean for you? If you’re ready to sell your current house and plan to buy another one, it may be a good idea to think about moving now before prices go up more. That would give you the chance to buy your next home before it gets more expensive.

4. Leverage Your Equity

Homeowners today have tremendous amounts of equity. In fact, a recent report from CoreLogic says the average homeowner with a mortgage has more than $300,000 in equity.

If you’ve been waiting to sell because you were worried about home affordability, know your equity can really help with your next move. It might even cover a big part, or maybe all, of the down payment for your next home.

Bottom Line

If you’re thinking about selling your house and moving to another one, let’s connect to get the process started now so you can get a leg up on your competition.

Lifestyle • February 1, 2024

How to Pet-Proof Your Home for Furry Family Members

by LaDawn Sperling

If you share your home with a pet or two (or five), you know their well-being is a top priority. Along with making a move less stressful for them, learning how to pet-proof your home should be high on the list for responsible pet owners. Read on to know what to look out for and how to make your home a comfortable and secure place for everyone.

Kitchens

Start your pet-proofing mission in the kitchen, as it has a lot of potentially dangerous and tempting items for your four-legged friends. Ensure cabinets are secure to prevent access to cleaning supplies, cutlery and any unauthorized treats – child-proof cabinet locks are an excellent option here. Some human foods can be life-threatening for dogs and cats, so promptly store items like chocolates, crackers and leftovers away or you could be making an unexpected trip to the emergency vet. Garbage bins should have lids or be kept inside cabinets, as pets can get into trash hunting for a bonus meal.

Living Rooms

You probably spend a lot of quality time with your pets in your living room, which also deserves a careful going-over. Keep small objects, like breakable decorative pieces and children’s toys, out of reach. Electrical cords should be concealed or secured, as they present a chewing temptation for many animals. Certain houseplants can also be toxic for your fur babies, so you’ll want to eliminate any dangerous varieties.

Bedrooms and Bathrooms

In bedrooms, keep your clothes, shoes and personal items stowed away since anything can become a fun chew toy, especially for dogs. Secure medications, razors and other sharp objects away from curious paws and noses. And while a cat lying on the bathroom floor surrounded by a roll of unspooled toilet paper seems like it’d be great photo op, it’ll be a pain to clean up. Consider keeping doors closed when you’re not around.

Yards, Patios and Decks

If your pets spend considerable time outside, you’ll want to provide a shaded area and fresh water to prevent overheating in hot weather. Also, think about installing a pet door if you do have an enclosed outdoor space like a catio or dog run, making it easy for them to get outside safely. Plus, animals can be notorious escape artists, so securely latch all non-pet doors and windows to prevent any unexpected breakouts.

Create Pet-Friendly Spaces

Pet-proofing is not only about forbidden areas and potential harm – it’s also about making cozy and pet-specific areas for your animals. Your pets deserve to love their home as much as you do, so give them their own spots, like napping nooks and comfortable hiding places. Dogs might appreciate a snuggly bed in a quiet corner, while many cats love hanging out in a felted cat cave. Designate an area for pet toys, like a stylish basket or bin. This will make picking up a breeze and your pets will know where to go when it’s time to play.

Creating a safe environment by knowing how to pet-proof your home is vital to being a good pet owner. And with a little effort, you can make your house a haven for the whole family.

Real Estate News, Tips, & Tricks • January 25, 2024

2 Reasons Why Today’s Mortgage Rate Trend Is Good for Sellers

by LaDawn Sperling

If you’ve been holding off on selling your house to make a move because you felt mortgage rates were too high, their recent downward trend is exciting news for you. Mortgage rates have descended since last October when they hit 7.79%. In fact, they’ve been below 7% for over a month now (see graph below):

And while they’re not going back to the 3% we saw during the unicorn years, they are expected to continue to go down from where they are now in the near future. As Dean Baker, Senior Economist at the Center for Economic Research, explains:

“It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”

Here are two reasons why this recent trend, and the expectation it’ll continue, is such good news for you.

You May Not Feel as Locked-In to Your Current Mortgage Rate

With mortgage rates already significantly lower than they were just a few months ago, you may feel less locked-in to the current mortgage rate you have on your house. When mortgage rates were higher, moving to a new home meant possibly trading in a low rate for one up near 8%.

However, with rates dropping, the difference between your current mortgage rate and the new rate you’d be taking on isn’t as big as it was. That makes moving more affordable than it was just a few months ago. As Lance Lambert, Founder of ResiClub, explains:

“We might be at peak “lock-in effect.” Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”

More Buyers Will Be Coming to the Market

According to data from Bright MLS, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates (see graph below):

Lower mortgage rates mean buyers can potentially save money on their home loans, making the prospect of purchasing a home more attractive and affordable. Now that rates are easing, more buyers are likely to feel they’re ready to jump back into the market and make their move. And more buyers mean more demand for your house.

Bottom Line

If you’ve been waiting to sell because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the recent decline in mortgage rates may be your sign it’s time to move. When you’re ready, let’s connect.

Uncategorized • January 18, 2024

Ways Your Home Equity Can Help You Reach Your Goals

by LaDawn Sperling

If you’ve owned your house for at least a couple of years, there’s something you’re going to want to know more about – and that’s home equity. If you’re not familiar with that term, Freddie Mac defines it like this:

“. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.”

That means your equity grows as you pay down your home loan over time and as home values climb. While it’s true home prices dipped slightly last year, they rebounded and have been climbing in many areas since then. Here’s why that price growth is good news for you.

In the latest Equity Insights Report, Selma Hepp, Chief Economist at CoreLogic, explains:

“With price gains continuing to help homeowners build wealth, equity has reached a new high and regained losses that resulted from declines last year. And while the average U.S. homeowner gained over $20,000 in additional equity compared with the third quarter of 2022, some markets are seeing larger increases as price growth catches up.”

And that figure is just for the last year. To help you really understand how that number can add up over time, the report also says the average homeowner with a mortgage has more than $300,000 in equity. That much equity can have a big impact.

Here are a few examples of how you can put your home equity to work for you.

1. Buy a Home That Fits Your Needs

If your current space no longer meets your needs, it might be time to think about moving to a bigger home. And if you’ve got too much space, downsizing to a smaller one could be just right. Either way, you can put your equity toward a down payment on something that fits your changing lifestyle.

2. Reinvest in Your Current Home

And, if you’re not ready to move just yet, you can use the equity you have to improve your current home. But it’s important to consider the long-term benefits certain upgrades can bring to your home’s value. A real estate agent is a great resource on which projects to prioritize to get the greatest return on your investment when you sell later on.

3. Pursue Personal Ambitions

Home equity can also serve as a catalyst for realizing your life-long dreams. That could mean investing in a new business venture, retirement, or funding an education. While you shouldn’t use your equity for unnecessary spending, using it responsibly for something meaningful and impactful can really make a difference in your life.

4. Understand Your Options to Avoid Foreclosure

While the number of foreclosure filings remains below the norm, there are still some homeowners who go into foreclosure each year. If you’re in a tough spot financially, having a clear understanding of your options can help. Equity can act as a cushion if you’re not able to make your mortgage payments on time.

Bottom Line

If you want to know how much equity you have in your home, let’s connect. That way you have someone who can do a professional equity assessment report on how much you’ve built up over time. Then let’s talk through how you can use it to help you reach your goals.

Uncategorized • January 15, 2024

Interest rates drop – January 2024 Metro Denver Market Update

by LaDawn Sperling

Active inventory, new listings and Pending sales all decreased month-over-month. Average days on market increased significantly month-over-month, and closed sales decreased showing that the market continued to slow throughout December.

December’s vital statistics for all homes – detached single family (DSF) and attached single family (ASF) combined – included:

The average price for homes was down 0.51% compared to the previous month and up 3.32% from December 2022.
The average days in the MLS increased 21.05% from the prior month and are up 6.98% from a year ago. The median days in MLS increased from 22 days to 29 days month-over-month.
Active listings at months-end were down 25.63% from November and up 4.50% from this time last year.

Reflecting on the past year in the Denver real estate market, challenges were faced, including a shortage of inventory and rising interest rates. Despite these obstacles, buyers and sellers managed to find common ground in a stabilizing market, bidding farewell to frenzied multiple-offer scenarios for sellers and allowing buyers more negotiation room. With mortgage rates on a decline, anticipation and curiosity surround the upcoming year in the Denver real estate landscape.

The expectation is that a continued decline in interest rates will lure more buyers into the market, addressing significant pent-up demand from the past two years. This surge in demand could potentially apply pressure on home prices, although it is unlikely to reach the levels seen in previous years. If demand rises, a subsequent increase in inventory is anticipated throughout the year, as sellers feel more at ease with improved financing options. Denver does not always follow national trends and predictions, often outperforming the rest of the country. Ultimately the trajectory of the year is dependent upon interest rates and consumer confidence.

This update is based on information provided by the Denver Metro Association of Realtors® for the period of December 1, 2023, through December 31, 2023, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

Real Estate News, Tips, & Tricks • January 11, 2024

Expert Quotes on the 2024 Housing Market Forecast

by LaDawn Sperling

If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market in 2024. In 2023, higher mortgage rates, confusion over home price headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But what’s on the horizon for the new year?

The good news is, many experts are optimistic we’ve turned a corner and are headed in a positive direction.

Mortgage Rates Expected To Ease

Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with affordability challenges. Mark Fleming, Chief Economist at First American, explains how they may continue to drop:

“Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .”

Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market.”

The Supply of Homes for Sale May Grow

As rates ease, activity in the housing market should pick up because more buyers and sellers who had been holding off will jump back into action. If more sellers list, the supply of homes for sale will grow – a trend we’ve already started to see this year. Lisa Sturtevant, Chief Economist at Bright MLS, says:

“Supply will loosen up in 2024. Even homeowners who have been characterized as being ‘locked in’ to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%.”

Home Price Growth Should Moderate

And mortgage rates pulling back isn’t the only positive sign for affordability. Home price growth is expected to moderate too, as inventory improves but is still low overall. As the Home Price Expectation Survey (HPES) from Fannie Mae, a survey of over 100 economists, investment strategists, and housing market analysts, says:

“On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively.”

To wrap it up, experts project 2024 will be a better year for the housing market. So, if you’re thinking about making a move next year, know that early signs show we’re turning a corner. As Mike Simonsen, President and Founder of Altos Research, puts it:

“We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024.”

Bottom Line

Experts are optimistic about what 2024 holds for the housing market. If you’re looking to buy or sell a home in the new year, the best way to ensure you’re up to date on the latest forecasts is to partner with a trusted real estate agent. Let’s connect.

Real Estate News, Tips, & Tricks • January 4, 2024

Retiring Soon? Why Moving Might Be the Perfect Next Step

by LaDawn Sperling

If you’re thinking about retirement or have already retired this year, it’s a good time to consider if your current house is still a good fit for the next chapter in your life.

Fortunately, you may be in a better position to make a move than you realize. Here are a few things to think about as you decide whether or not to sell and make a move.

How Long You’ve Been in Your Home

From 1985 to 2008, the average length of time homeowners typically stayed in their homes was only six years. But according to the National Association of Realtors (NAR), that number is rising today, meaning many homeowners are living in their houses even longer (see graph below):

When you live in a home for a significant period of time, it’s natural for you to experience a number of changes in your life while you’re in that house. As those life changes and milestones happen, your needs may change. And if your current home no longer meets them, you may have better options waiting for you.

How Much Equity You’ve Gained

Additionally, if you’ve been in your house for more than a few years, you’ve likely built-up significant equity that can fuel your next move. That’s because the longer you’ve been in your house, the more likely it’s grown in value due to home price appreciation. Data from the Federal Housing Finance Agency (FHFA) illustrates that point (see graph below):

While home price growth varies by state and local area, the national average shows the typical homeowner who’s been in their house for five years saw it increase in value by nearly 60%. And the average homeowner who’s owned their home since 1991 saw it more than triple in value over that time.

Consider Your Retirement Goals

Whether you’re looking to downsize, relocate to a dream destination, or simply be closer to loved ones, your home equity can be a key to realizing your homeownership goals. NAR shares that for recent home sellers, the primary reason to move was to be closer to loved ones.

Whatever your home goals are, a trusted real estate agent can work with you to find the best option. They’ll help you sell your current house and guide you through buying the home that’s right for your lifestyle today.

Bottom Line

Retirement can bring about major changes in your life, including what you need from your home. Let’s connect to explore the available homes in our area.

Real Estate News, Tips, & Tricks • December 28, 2023

Sell Smarter: Why Working with a Real Estate Agent May Beat Going Solo

by LaDawn Sperling

If you’re thinking about selling your house on your own, called “For Sale by Owner” or FSBO, there are some important things to consider. Going this route means taking on a lot of responsibilities by yourself – and that can be a bit of a headache.

A recent report from the National Association of Realtors (NAR) found two of the most difficult tasks for people who sell their house on their own are getting the price right and understanding and performing paperwork.

Here are just a few of the ways an agent helps with those difficult tasks.

Getting the Price Right

Setting the right price for your house is important when you’re trying to sell it. If you’re selling your house on your own, two common issues can happen. For starters, you might ask for too much money (overpricing). Alternatively, you might not ask for enough (underpricing). Either can make it hard to sell your house. According to NerdWallet:

“When selling a home, first impressions matter. Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing.

. . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.”

To avoid these problems, it’s a good idea to team up with a real estate agent. Real estate agents know how to figure out the perfect price because they understand the local housing market. They can use their expertise to set a price that matches what buyers are willing to pay, giving your house the best chance to impress from the start.

Understanding and Performing Paperwork

Selling a house involves a bunch of paperwork and legal documentation that has to be just right. There are a lot of rules and regulations to follow, making it a bit tricky for homeowners to manage everything on their own. Without a pro by your side, you could end up facing liability risks and legal complications.

Real estate agents are experts in all the contracts and paperwork needed for selling a house. They know the rules and can guide you through it all, reducing the chance of mistakes that might lead to legal problems or delays.

So, instead of dealing with the growing pile of documents on your own, team up with an agent who can be your advisor, helping you avoid any legal bumps in the road.

Bottom Line

Selling your house is a big deal, and it can be complicated. Having a real estate agent can make a huge difference with setting the right price and managing all the details, so you can sell confidently. Let’s connect to make the process smooth and take the stress off your plate.

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